H.R. 7598 — VALOR Act

This section amends funding fee requirements for VA housing loans guaranteed, insured, or made under chapter 37 of title 38, U.S. Code, (1) to treat any fee collected in violation of an exemption as an overpayment and require the Secretary either to refund it or credit it to the loan; and (2) to require collection of the fee from a veteran with a pending disability compensation claim or notice of intent to file as of the loan application date, with reimbursement of the fee if the claim is subsequently approved and compensation paid. (Thus, upfront fee collection applies even if disability eligibility for exemption is pending, avoiding delays in loan processing while ensuring refunds for ultimately eligible veterans.)